Proposal for businesses to decide on their own gasoline prices with low consumption proportion

DNVN - According to the proposal of the Ministry of Industry and Trade, the state will only announce the world price of petroleum products for two popular petroleum products on the market: RON 95 III gasoline and 0.05S diesel. The remaining petroleum products have a small consumption proportion because enterprises decide the selling price of petroleum on the market.

The Ministry of Industry and Trade has just released the latest information on the draft to replace the decrees on petroleum trading. Regarding the mechanism for regulating petroleum prices, according to the Ministry of Industry and Trade, currently, state management agencies and enterprises have to go through many steps, petroleum traders are not proactive in deciding on retail prices of petroleum in their distribution system but instead rely on the base price announced by the state management agency and then follow it.

During the process of collecting opinions on the draft Decree, there were other opinions, suggesting that the state should let enterprises proactively calculate and decide on selling prices according to market mechanisms.

Representatives of the Vietnam Petroleum Association and representatives of some traders proposed the principle of adjusting the selling price of petroleum in the direction of: The State announces the price calculation formula, international reference price and average premium; does not announce business costs and standard profits. Based on the price calculation formula and the reference price announced by the State, the main petroleum traders and petroleum distributors decide on wholesale prices, retail prices and the time of price adjustment according to the market mechanism.

The Vietnam Petroleum Association proposes that key traders and petroleum distributors decide on wholesale prices, retail prices and price adjustment timing according to market mechanisms.

Petroleum traders are responsible for completing procedures to declare and announce the prices they decide according to the provisions of law. In case the petroleum market is unstable and there is a decision to stabilize prices, the principles for adjusting petroleum prices as stipulated in the draft Decree shall be followed.

The Ministry of Industry and Trade believes that the plan proposed by representatives of the Vietnam Petroleum Association and a number of businesses has advantages: Businesses are completely proactive in deciding on gasoline prices and is closer to the 2023 Price Law. However, there are also disadvantages: The costs of different businesses lead to different gasoline prices in different areas, especially in remote areas where costs will increase, causing difficulties for people in these areas; the state has no control tools and can lead to shortages, supply disruptions, and shortages and price hikes in remote areas.

The option according to the draft Decree has the advantage: the State maintains the tool to control gasoline prices, thereby monitoring the supply. But it also has the disadvantage of not being close to the Law on Prices because it still controls gasoline prices through ceiling prices. Enterprises are not completely proactive in deciding prices according to the market mechanism.

"This is a big problem. Petroleum is a sensitive commodity that affects economic security and energy security. The implementation of petroleum prices immediately following the market mechanism as proposed by the Vietnam Petroleum Association and some traders needs to be carefully considered and have a roadmap for implementation," the Ministry of Industry and Trade stated.

According to the Ministry of Industry and Trade, the content of the draft Decree, although still maintaining the tools to control prices, in order to take a step forward towards the roadmap of complete marketization of domestic gasoline and oil prices in the future, the draft Decree is expected to: only announce the world gasoline and oil product prices for 2 popular gasoline and oil products on the market, which are RON 95 III gasoline and 0.05S diesel, instead of announcing the prices of 5 products as currently including RON 95 III, DO 0.05S diesel, E5 RON 92 gasoline, fuel oil, and kerosene.

RON 95 III gasoline and 0.05S-II diesel have a large consumption proportion and are popular gasoline and oil products on the market, affecting the majority of consumers, so the State needs to continue to announce world prices and input factors for businesses to calculate and announce according to the formula.

E5 RON 92 gasoline and other gasoline and oil products have a small consumption proportion, so businesses can proactively announce world gasoline and oil prices during price adjustment periods and decide on gasoline and oil selling prices on the market.

Traders who announce gasoline prices must declare prices according to regulations. In case of unreasonable price increases, they will be inspected and handled by competent state agencies. This is a new content of the draft Decree, a pilot step, exploring the market to gradually apply gasoline prices completely according to the market mechanism.

However, taking into account the opinions of the Association and representatives of some enterprises, the Ministry of Industry and Trade plans to submit two options to the Government. Option 1 remains the same as the draft Decree, meaning the state will announce prices for two popular consumer goods, RON 95 III gasoline and diesel, while businesses will decide prices for the remaining goods.

Option 2 is to implement according to the proposal of the association and representatives of some enterprises. Option 1: Keep the draft Decree as it is and option 2 is according to the proposal of the association and representatives of some enterprises.

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Source: https://doanhnghiepvn.vn/kinh-te/de-xuat-cho-doanh-nghiep-tu-quyet-gia-xang-dau-co-ty-trong-tieu-thu-thap/20241123090057545